New VAT could impact ODEL growth
View(s):Odel, the top Sri Lanka, fashion store chain which is branded around its iconic founder Otara Gunewardene , says the new Value Added Tax (VAT) could impact on the group’s profitability
“While we are encouraged by the growth in sales across the store network, we remain cautious in forecasting the year end results for ODEL, mainly due to the possible impacts of the VAT that was introduced from 1st January 2013,” noted Ms Gunewardene, the company CEO, in a statement reflecting on the company’s 9th month results ending 31st December 2012..
“However, we are optimistic as we feel that we have laid the foundation for long term growth and ODEL is now ready to enter its next phase of development,” she said.
ODEL reported turnover of Rs 3.47 billion for the 9-month period, up 21 per cent over the corresponding period of the previous year. Post tax profit was Rs 253.9 million at the end of the third quarter of the year, an improvement of eight per cent. Net profit for the nine months was up five per cent to Rs 185.8 million.
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